After driving 1 mile while the engin is cold the temp gauge will spike to hot and blow cold air. After shutting the engine down and restarting the temp gauge will go to cold and start blowing warm air through the heater. This will happen 3 time before it will run without spiking and blowing hot air through the heater but the temp gauge stays at cold. Whats going on ??? This is on a 2000 E350 5.4 I replaced the 2 sensors and the thermostat flushed it out and added new coolant

 

It may or may not be , but it sounds like there is air trapped in the cooling system.
As soon as the engine is run a few minutes what do the heater hoses feel like? Are they both hot? Those engines get warm fast and the hoses should get warm fast too. Are you getting any bubbles in the recovery tank at any time?
Does the vehicle have automatic temp control for the heating system or manual?
May not be a cooling system problem at all.

 

I also put a new water pump in last night thinking that might be the problem and today it's the same.... We put this attachment on the coolant tank and sucked all the air out and it was fine all the way home with great heat but this morning it was back to spiking. The temp gauge reads cold until it spikes then I shut it off and the gauge reads cold until it spikes again....I'm totally baffled by this.

 

Did you ever get a chance to do the checks I suggested in an earlier post?

 

It has manual heating control... The hoses get warm and some bubbles did come out

 

Let's step back and look at this from a different angle .
The actual temp reading and heater functions could be incorrect and possibly be caused by a completely different part of the vehicle and not necessarily the cooling system.
It may be a little far out, but these symptoms could be caused by an electrical problem in the instrument cluster or somewhere else in the vehicle.
There are some things that might help clear them up if that is the case.
It seems by turning off the key and then turning it back on temporarily corrects the problem.
If you haven't done so yet , try removing the battery cables from the battery and touching them together for maybe 15 seconds then reconnect them to the battery.
If that doesn't get rid of the problem then we need to get some addl info.
Was the windshield ever replaced in this vehicle? If so there could be a possible problem with the "smart junction box" a part that is full of various fuses, relays and connections to various parts of the vehicle. If that area gets wet enough and corrosion takes place pandora's box opens and the worms start coming out meaning crazy things start happening that can sometimes defy explanation. I don't want to lead you on a wild goose chase so it's best to take steps one at a time to try to pin down what is really happening.

 

I took the battery cables off and that didn't change anything, as for the windshield ?? I dont know if it's been replaced but it has not since I've had it (2 years )

 

I have checked all the wiring diagrams I could find and could not establish any connection with the temp gauge and heater blend door. Are there any other peculiar problems that have not been mentioned that might provide a clue to look somewhere else?
Sometimes poor ground connections can do strange things. Can you try loosening and retightening all the ground connections you can find/see.
Each time you open the cooling system for whatever reason air gets in there and you might need to confirm that all the air is out of the system.

 

Since filling it last night I haven't opened it for any reason. Since putting in the new sensor the temp gauge hasn't operated properly. It spikes from dead cold to hot, when I shut the key off it goes back to reading cold. I tried taking the battery cables off and reattaching them and that made no difference. After purging air from system I have heat until I shut the engine off and let cool down, in the morning it happens all over again. Sometimes when it reads hot a little coolant will come out. I took it to the Ford dealer and they have no clue as to whats wrong.

 

Each time we communicate more comes to light.
If the temp gauge started working incorrectly since you changed the sensor there are a couple of possibilities there !
It is possible you have the incorrect sensor in the incorrect place. I hope you purchased them from Ford. Aftermarket sensors don't always work in the right place .
What was the original problem, and how did you determine the sensor might be at fault? Some will provide a signal to indicate a certain temp and others will turn on the "HOT" light. Could you have the wrong sensor in the wrong place?
The heater blend door problem could be an entirely different problem that just happened to show up at this time or was present previously and is not related to the gauge problem.